reduce utiliz on multiple cards.

[noobafterbk]

so i have approx 29k of available credit across 5 cards including a 500 secured and a 10k venture.
i have a 5k balance on one card with a 7.5k limit and zero balances on the others...should i spread the balnce so as to reduce utiliz or keep paying it down on one card and leave the others at zero. im trying to maximize scores for morgage next year
i will pay all balances to zero by end of year.

[Anonymous]

If Im reading this right spreading the balance around wouldnt decrease your util since you would still owe the same amount. Only thing that would do is give you more payments to keep up with.
You could decrease util by paying the balance down or getting limit increases on the cards you have.

[Pway]

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@noobafterbk wrote:
so i have approx 29k of available credit across 5 cards including a 500 secured and a 10k venture.
i have a 5k balance on one card with a 7.5k limit and zero balances on the others...should i spread the balnce so as to reduce utiliz or keep paying it down on one card and leave the others at zero. im trying to maximize scores for morgage next year
i will pay all balances to zero by end of year.

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No, I would not spread the balance over the other cards you have.  If this card is going to be paid off at the end of the year I would not put too much emphasis on this.  Utilization has no memory month to month.  I am sure by the time you get ready to app for that mortgage your scores will be in top shape.  Yes keep paying down the balance and keep the other cards at zero.

[Anonymous]

Wait I think I get it. Should you spread it around to decrease the util on the one card. Unless your paying a lot of interest on the one card and could transfer it to a card with 0% Id leave it as is.

[CH-7-Mission-Accomplished]

There is a complete urban myth floating around these credit boards that it would be better to have two cards reporting 30% of their limit versus one card reporting 60% (assuming all have the same limit).  There is no FICO penalty on an individual card unless it is over 90%.  The number that counts is overall utilization = Total revolving balances / Total Revolving Credit Limits.

[Anonymous]

I would just pay the one card down unless you have a huge difference on the interest rate. 

[Anonymous]

This is true FICO is notgonna punish you for 60% utilization but the credit card companies probably wont help you out either, you can look at it both ways.

If I had the choice I would just have the one card rather than two minimum payments to pay but of course you pay more than minimum, and then if you cando that you should just leave it on the 1 card and slam it with bi-monthly payments

[OmarGB9]

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@CH-7-Mission-Accomplished wrote:

There is a complete urban myth floating around these credit boards that it would be better to have two cards reporting 30% of their limit versus one card reporting 60% (assuming all have the same limit).  There is no FICO penalty on an individual card unless it is over 90%.  The number that counts is overall utilization = Total revolving balances / Total Revolving Credit Limits.

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I have to disagree here. I did a BT back in June onto a newly opened Barclays Rewards card and used up 83% of my limit and my scores dropped 38 points. I've gotten about half of them back by bringing that card's individual UTIL down to about 70%.

[Anonymous]

A new account that doubles your credit increases your score. simply adding a card to someone well-established knocks it down.  38 points down for a new acct,  a HP,  and worse util is harsh but very real.